Catholic School Funding Scrutiny Demanded After NSW Icac Inquiry 2026

Catholic school funding scrutiny has intensified in New South Wales after the Independent Commission Against Corruption (Icac) heard allegations of a 'sham arrangement' involving payments to a lobbying firm. The Independent Education Union (IEU) now demands greater oversight of how public money is allocated to non-government schools, following testimony from Catholic Schools NSW's chief executive, Dallas McInerney.

Icac Inquiry into Catholic Schools NSW Payments

The inquiry is examining whether Catholic Schools NSW, which represents 600 Catholic schools, made illegal donations to support the factional activities of the Christian group known as the Reformers. The group sought more conservative policies on abortion, euthanasia, and same-sex marriage. Icac has heard that Catholic Schools NSW paid Beckington, a lobbying company run by Reformers Christian Ellis and Jeremy Greenwood, $130,900 through invoices for consulting services between August 2019 and August 2021. Another company, JPG Advisory, received $135,000 between December 2021 and December 2023.

McInerney insisted on Friday that the payments were not a 'sham arrangement' to fund Liberal party factional work. However, the IEU's NSW branch, which had previously declined to comment, expressed deep concern over allegations that public funding may have been wrongfully spent on political matters.

Teachers Union Calls for Greater Scrutiny

Carol Matthews, secretary of the IEU NSW/ACT branch, stated that close scrutiny of public funding was not applied to organisations like Catholic Schools NSW, which receive funding on behalf of Catholic diocesan schools. 'Regardless of the findings of Icac in this matter, there should be greater scrutiny of bodies such as Catholic Schools NSW, which receive public funding on behalf of non-government schools,' she said. About 80% of the funding for these schools comes from public sources, making accountability crucial.

The union's demand comes as Icac continues to investigate whether employees Robert Assaf and Dylan Whitelaw spent work hours on factional efforts while employed at Catholic Schools NSW. The inquiry has also heard that the Reformers aimed to influence Liberal party preselections and policy direction.

Key Takeaways from the Icac Hearing

• Public funding for Catholic schools may have been diverted to political lobbying.
• The IEU is calling for greater transparency in how non-government school bodies manage taxpayer money.
• Icac is investigating payments totalling over $265,000 to two lobbying firms.
• The Reformers sought to push conservative policies on social issues.

Comparison of Payments to Lobbying Firms

The total payments exceed $265,000, raising questions about the purpose of these consulting services. The IEU argues that such spending should be subject to independent audit and public reporting, especially given the reliance on government funding.

Implications for Catholic School Funding

This case highlights a broader issue: the lack of oversight for non-government school funding bodies. While public schools are directly accountable to government departments, Catholic Schools NSW operates with significant autonomy. The union's call for greater scrutiny could lead to legislative changes or new compliance requirements.

Parents and taxpayers alike have a stake in ensuring that public money intended for education is not misused. The Icac inquiry is ongoing, and its findings may prompt reforms to how Catholic school funding is monitored.

FAQ

As the Icac investigation continues, the outcome could reshape how Catholic school funding is administered in NSW. For now, the union's call for greater scrutiny serves as a reminder that public money must be handled with integrity.

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